The canonical PoS USDT on Polygon has been upgraded to the USDT0 standard, powered by LayerZero’s Omnichain Fungible Token framework. Backed 1:1 by USDT on Ethereum, USDT0 brings over $1.3 billion in liquidity and six million wallets into a seamless cross-chain ecosystem.
Alongside it, XAUt0, Tether Gold’s omnichain version, is now live. This introduces native gold-backed liquidity on Polygon. Let’s discover more about USDT0, too.
USDT0: Frictionless Stablecoin Liquidity
The USDT0 upgrade eliminates the need for wrapped tokens or outdated bridges, offering a smoother experience for DeFi users and enterprises. Stablecoin holders can now move USDT across chains instantly, enabling faster peer-to-peer payments, asset-backed finance, and integration into decentralized protocols. For example, a lending platform on Polygon can now accept USDT0 directly as collateral without requiring intermediaries, reducing transaction friction and operational complexity.
USDT0 and XAUt0 are live on @0xPolygon.
PoS USDT on Polygon has been upgraded to the USDT0 standard.
The largest stablecoin, and the most trusted store of value, integrated into one of the most widely used blockchains.
Your USDT and XAUt, now on Polygon. pic.twitter.com/IR3FE6mHeJ
— USDT0 (@USDT0_to) August 27, 2025
Polygon has grown into a full-stack multichain coordination layer, increasingly favored by institutional and enterprise adoption. With USDT0, the network can support high-volume transactions efficiently, positioning it as a go-to destination for DeFi protocols seeking reliable stablecoin infrastructure. The adoption of USDT0 reflects a broader trend in the crypto space toward omnichain assets that are native across multiple blockchains, improving liquidity and capital efficiency.
XAUt0: Gold-Backed DeFi on Polygon
XAUt0 introduces the first native gold-backed liquidity on Polygon. DeFi protocols can now integrate gold-backed collateral directly for borrowing, hedging, and portfolio management strategies. This opens new possibilities for institutional and retail investors who want exposure to gold without leaving the blockchain ecosystem.
The world’s most liquid stablecoin and tokenized gold arrive on Polygon.
USDT0 and XAUt0, now live. https://t.co/Cn5ZgSzha5 pic.twitter.com/ENbOtm7J6s
— LayerZero (@LayerZero_Core) August 27, 2025
For instance, a DeFi lending platform could allow users to borrow against XAUt0 collateral. It combines the stability of gold with the efficiency of Polygon’s network. This aligns with a growing trend of asset-backed DeFi products. Where traditional assets such as fiat, real estate, or commodities are tokenized to increase accessibility and liquidity.
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